TikTok ads now reach more than 1 billion active users worldwide!
The numbers are staggering. TikTok stands as the most downloaded social app worldwide, and users spend about 58 minutes on the platform each day. The platform’s influence on purchasing decisions is remarkable – 92% of TikTok users feel motivated to act after watching a video, and 39% buy products they find while browsing.
These stats tell an amazing story. The hashtag #TikTokMadeMeBuyIt appears in more than 8.4 million videos, and Kantar LinkAI analysis shows TikTok ads perform 15-20% better than digital and TV standards on metrics of all types.
Businesses aiming to increase conversions can choose from TikTok advertising options that match their goals, target audience, budget, and schedule. Some TikTok ads work better than others.
This piece will show you how to create TikTok ads that drive conversions in 2025. We’ll cover everything from setting up your TikTok Ads Manager account to making your campaigns more effective, with proven strategies and real examples. Let’s get started!
Why TikTok Ads Work in 2025
TikTok dominates the digital world of advertising in 2025. A marketer summed it up perfectly: “video isn’t just part of the marketing strategy anymore. It is the strategy”. TikTok’s remarkable growth and unique capabilities make it a vital platform that brands need to achieve meaningful conversions. Here’s why TikTok ads deliver exceptional results this year.
High engagement from Gen Z and Millennials
Young demographics flock to TikTok at unprecedented rates. The platform serves approximately 2 billion users worldwide, and 55% of these users are under 30 years old. These numbers represent more than just presence—they show deep user participation.
Users dedicate 58 minutes daily to scroll through content and open the app about 8 times each day. Such engagement creates multiple opportunities for brand exposure daily.
These users actively take action. The numbers tell a compelling story:
- 61% of TikTok users find new brands and products on the platform
- 92% of users take some form of action after viewing content (share, comment, follow, like, etc.)
- 67% of Gen Z respondents say TikTok content influences their purchasing decisions
- 55% of TikTok users aged 16-24 have bought something after seeing a brand on the platform
Each demographic responds uniquely to advertising. Millennials on TikTok are 2.3x more likely to create posts that tag brands, becoming voluntary brand ambassadors. Gen Z users prefer to message brands directly after purchases, doing so 1.2x more often.
Video-first platform with global reach
TikTok’s global presence helps your advertising reach audiences way beyond the reach and influence of typical platforms. The app reaches 96% of the global digital population, connecting with about 90% of all internet users in countries like Vietnam, Chile, and Thailand.
TikTok’s video-first approach matches current consumer behavior perfectly. Short-form videos generate 135% more organic reach than static image posts. This format naturally boosts brand visibility.
Users retain 95% of messages through video format, compared to just 10% when reading text. This makes brand messages stick and increases recall rates significantly.
Better ROI compared to other platforms
Marketers love TikTok’s remarkable return on investment. TikTok ads achieve an average short-term ROI of 11.8, making it one of the most effective revenue-generating media channels.
The platform outperforms others consistently—75% of advertisers achieved their highest ROI on TikTok. Long-term value adds another 4.5 to the ROI.
TikTok ads provide budget-friendly options with:
- Average CPC from MYR 0.85 to MYR 4.47
- CPM projected at MYR 31.40 in Q1 2025, lower than competing platforms
Specific ad formats prove highly effective. Branded hashtag challenges boost brand recall 4 times more than standard mobile ads, and 90% deliver minimum 2.5x returns on investments.
Success on TikTok requires consistency. Brands that maintain steady presence rather than sporadic campaigns see sustained sales growth. Regular engagement strengthens brand familiarity and keeps you in consumers’ minds when they’re ready to buy.

Understanding TikTok Ad Types
TikTok has several ad formats that help you connect with users in different ways. You need to understand these options to create campaigns that reach your audience and boost conversions. Let’s take a closer look at the six main TikTok ad formats available in 2025.
In-Feed Ads
In-Feed ads show up naturally in users’ For You feeds and allow likes, comments, shares, and profile visits. These ads blend smoothly with regular content, which makes them less disruptive and more engaging. You can run In-Feed ads up to 60 seconds (though 9-15 seconds works best) and they support multiple dimensions including vertical (9:16), horizontal (16:9), and square (1:1) formats.
You’ll find two types of In-Feed ads: Spark and Non-Spark. Non-Spark ads are created just for paid promotion, while Spark ads boost existing TikTok posts. You can buy both through auction (where you bid in real-time) or reservation (securing specific spots ahead of time).
TopView Ads
TopView ads grab maximum attention by appearing right as users open TikTok. These full-screen videos run between 5-60 seconds (9-15 seconds works best) and include clickable CTAs. These ads are a great way to build brand awareness—they work 67% better than other TikTok ad formats.
eOne’s campaign for “Dungeons & Dragons: Honor Among Thieves” shows how well these work—it got over 50 million impressions. The numbers speak for themselves: 71% of TikTok users say TopView ads catch their attention.
Branded Hashtag Challenges
Branded Hashtag Challenges (HTC) get users to create content about your brand, which turns viewers into active participants. These challenges appear on TikTok’s Discover page and have their own special challenge page.
HTCs really work—they have a median engagement rate of 17.5%. Nissan’s #improvisewithJUKE challenge got over 129 million video views, and Colgate’s #MakeMomSmile reached more than 4.6 billion views. The best part? More than half of the return on ad spend comes from organic video views that keep bringing value long after the campaign ends.
Spark Ads
Spark Ads let brands boost organic TikTok posts (their own or creators’) while keeping the natural feel of regular content. These ads keep all user interactions—comments, likes, shares—and link them to the original post.
The numbers are impressive: Spark Ads have a 134% higher completion rate and 157% higher 6-second view-through rate than regular In-Feed Ads. On top of that, their profile landing page gets a 69% higher conversion rate and 37% lower CPA.
Branded Effects
Branded Effects let you create custom stickers, filters, and effects that users can add to their videos. You can use these effects alone or combine them with Branded Hashtag Challenges.
Your Branded Effects need to follow specific rules, including logo size limits (within 150×130 pixels) and icon specifications (162×162px with 20px round corners). These work especially well with younger audiences—Cheetos ran a Branded Effect campaign in Egypt that got over 92 million video views and lifted brand awareness by 13.3%.
Video Shopping Ads
Video Shopping Ads make in-feed videos shoppable, so users can browse and buy products right from TikTok Shop. These ads use TikTok’s advanced targeting to show products to people most likely to buy them.
You’ll get the best results if you use 3-5 ad creatives per ad group, run your ads for at least 7 days, and use either Highest Gross Revenue or Maximum Delivery Bidding to automatically boost sales.
How to Run TikTok Ads Step-by-Step
Setting up your first TikTok advertising campaign might look complex, but a step-by-step approach makes everything simple. Here’s how you can get your TikTok ads running smoothly in 2025.
Create a TikTok Ads Manager account
Head over to to start your registration. You’ll need these details:ads.tiktok.com
- Your email address or phone number (for verification)
- Company website
- Business name and industry
- Country/region
- Time zone and currency priorities
After registration, add your contact details and accept TikTok’s terms and conditions. The next step is business verification. TikTok usually takes less than 24 hours to review and approve accounts. Your unique ad account ID becomes available in TikTok Ads Manager after approval.
Install the TikTok Pixel
TikTok Pixel plays a crucial role in tracking conversions and making campaigns better. Here’s how to set it up:
- Go to “Tools” → “Events” in Ads Manager
- Select “Connect Data Source” and click “Web”
- Type your website URL and pick either “Partner Integration” or “Manual Setup”
Manual installation needs you to paste the generated code in the section of your website. Popular platforms like Shopify or WooCommerce come with easier integration options. The Pixel tracks user activities such as page views, clicks, and conversions. This data helps you measure how well your campaigns perform.
Set campaign objectives and budget
TikTok groups campaign objectives into three categories:
- Awareness: Reach more people
- Consideration: Traffic, video views, community interaction
- Conversion: App promotion, lead generation, sales
Pick an objective that matches your business goals. The minimum budget starts at MYR 22.33 daily or MYR 312.65 lifetime. You’ll also need to set how long your campaign runs. Campaigns can run without an end date if you want continuous advertising.
Choose placements and targeting
Your next step is deciding where ads appear. TikTok can automatically optimize placement, or you can choose locations manually. You can reach users based on their engagement with similar content or specific hashtags through custom audience targeting.
Upload creatives and launch
The final step is adding your video or image content. You have two options:
- Use existing TikTok content as ads
- Create new videos specifically for advertising
Write your caption, add a call-to-action (like “Shop Now”), and include your destination URL. TikTok takes about 24 hours to review your ad. Keep an eye on your campaign’s performance after launch and make adjustments to get the best results.

Optimizing for Conversions
TikTok ads need constant optimization to convert well. Your work begins after your campaign goes live. Here’s how you can fine-tune your ads to get the best results.
Use TikTok-native creative styles
TikTok just needs content that feels authentic to the platform. Your creatives work best when they’re made specifically for TikTok instead of being repurposed from other channels. The simple requirements include vertical orientation (9:16), high-resolution (at least 720p), and appropriate audio.
Your ads should feature real people—creators, employees, or customers—to grab attention and boost engagement. A DIY or unpolished style blends naturally with user-generated content. This authenticity appeals to TikTok users who value genuine, relatable content more than highly produced ads.
Test multiple hooks and CTAs
Viewers decide to keep watching or scroll past in the first few seconds. Your hook must capture attention in the first 6 seconds. The first video frame matters most, and only 25% of users watch beyond five seconds.
Different calls-to-action should line up with your specific goals. “Shop Now” works best for product pages, “Download” for app installs, and “Sign up” for email signups. TikTok recommends avoiding generic CTAs like “Learn more” because they don’t clearly show what users should expect.
Use TikTok’s Smart Creative tools
TikTok’s Smart Creative automatically optimizes ad creative combinations through fatigue detection and auto-refresh strategies. The tool works in three steps:
- Creative asset combination (combining videos/images, text, and CTAs)
- Creative selection (delivering distinguished videos)
- Anti-creative fatigue refresh (pausing fatigued videos)
Smart Creative reduces ad fatigue, extends ad group lifespan, and makes costs more efficient over time. You can switch this feature on or off in your TikTok Ads Manager anytime.
Monitor performance and adjust
Key metrics help you understand what works: impressions, engagement rate, click-through rate, conversion rate, and return on ad spend. Good ads show authenticity, engagement, creativity, and relevance to your target audience.
You can curb creative fatigue by keeping 3-5 different creatives per ad group. Regular performance checks help you refresh ad group creatives when results consistently decline. Add new creatives to existing ad groups instead of creating new ones to extend their lifetime.
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